Every business within your target market is NOT the same. Example, not all Italian restaurants are the same, not all plumbers are the same, and not all legal firms are the same, etc. Thus, business list segmentation is the key for optimizing revenue from your business mailing list. Following are some business list segmentation strategies:
SEGMENT YOUR BUSINESS MAILING LIST BY ZIP CODE MEDIAN INCOME
Some cities are significantly more expensive than others. And it’s likely that businesses located in low income areas hold different viewpoints about money/prices than companies operating in expensive cities. Thus, consider segmenting your business mailing list by income … with lower pricing or larger discount offers to businesses in low income areas.
SEGMENT YOUR BUSINESS MAILING LIST BY POPULATION
A beauty salon located on Broadway Street in bustling Manhattan may have different product needs than a salon located in small town in North Dakota. The beauty salon in Manhattan may have a more diverse group of customers … thus a need for a greater range of products. Segmenting your business list by population.
SEGMENT YOUR BUSINESS MAILING LIST BY AD BUDGET
The amount of money a company spends on advertising can infer likelihood of receptivity to ideas for growing a business. Example, plumbers that are spending $10,000+ a year on advertising may be more open to revenue growth ideas than plumbers spending less than $2500 a year on advertising.
SEGMENT YOUR BUSINESS MAILING LIST BY HIGH TECH VS LOW TECH
There are millions of businesses that have been around for a long-time and that have a solid group of core customers – providing a satisfying amount of annual income. Some of these businesses may not have an interest in growing their business or doing anything differently. One way to identify some of these non-growth businesses is by using the Website Indicator. Long established companies without websites may have less of an interest in product/service offerings for growing a business … vs a fairly new hungry company with a website.
SEGMENT YOUR BUSINESS MAILING LIST BY THE 80 / 20 RULE
For many businesses about 80% of revenue comes from 20% of the customers. And when the 80/20 rule is true, segmenting the business mailing list by the 80/20 rule is an absolute MUST … since the 20% must be treated differently than the 80%. The 20% should receive more offers, bigger discounts, elaborate creative presentations, and top notch service.
SEGMENT YOUR BUSINESS MAILING LIST BY YEARS-IN-BUSINESS
There are over 4,000,000 businesses that have been established for over 15 years. These companies likely have strong relationships with their current suppliers, so it could be a challenge to convince these businesses to switch to your product / service offering. Thus, upon receiving your business mailing list, as a first step you should set this group aside … since the standard creative offering will likely not work for this group.
SEGMENT YOUR BUSINESS MAILING LIST BY HOME OFFICE VS COMMERCIAL ADDRESS
With THE largest home office mailing list (over 2,000,000 businesses), we know the home office market is booming; every year our home office mailing list quantity is growing. Here a snapshot of some home business mailing list markets:
- Accounting Firms: 75,000 nationwide … 12,000 of the 75,000 are operating from residential address
- Plumbing Contractors: 65,000 nationwide … 26,000 of the 65,000 are operating from residential address
- Insurance Agencies: 230,000 nationwide … 25,000 of the 230,000 are operating from residential address
- Manufacturers: 575,000 nationwide … 26,000 of the 575,000 are operating from residential address
Typically home businesses have different needs than companies located a commercial address. For example, when buying office furniture, a home office may place more emphasis on style … than a company with a commercial address. A furniture manufacturer working from the garage may have less of a need for OSHA posters or other employee related information. A home may be more likely to answer the phone on a Saturday – than a commercially addressed business. Bottom-line – study your inhouse database to learn if your home office customers are buying / responding differently than those from a commercial business office.